need some outside advice

need some outside advice

Hi all,I am in need of some advice. I will try to keep it short. Due to a divorce, i am now stuck with 2 financed cars. Going threw the divorce trashed my credit pretty good. Lots of late pays on credit cards and a repo from toyota. Any way im sitting on an trailblaer with 69k miles owe 17,300. Its an 04, interest rate of 23% santander holds that loan. My truck is an 08 ram with carmax auto 12% on it aabout 54 months left on both loans. Ive looked at selling the trailblazer, but ive got about 8-10k in negative equity. Im about 2k in negative equity on the truck. Any thoughts woul be helpful

Re: need some outside advice

Welcome to the forums; wish I could help you but I think you may need to seek professional advice on this one.

The big question is whether or not you still have the finances to meet your current financial obligations. In some respects, if you're not going to use the trailblazer, selling it and throwing the money at the loan principal would save you quite a bit of money over the life of the loan; it won't change your monthly required cash outlay, but you will save a bundle of interest in terms of financial planning for the future.

I think you're likely going to have trouble currently and likely for a year or more getting the car refinanced down to a lower rate.

There just aren't any golden bullet solutions I see; I would check over in the rebuilding forum, it's possible you can get some of the credit card lates removed via good will letters; that may put you in a better position.

Another alternative is if you have any assets that you can take a loan out against, typically loans you secure yourself against an asset are markedly cheaper interest rate; you may be able to self-refinance that way as well.

If you can't meet your obligations and don't have any asset reserves to draw upon, it may be time to look at a debt management / consolidation program or worse. Bad situation that, but sounds like you're not in a good one currently from a credit perspective.

Re: need some outside advice

Thanks for the honest insight. I can sell the truck if need be. I guess my question is am i being short sighted by sticking with santander? I know people say they suck, but even with a repo in july they will do another loan for me, just want me to trade there open loan.

Re: need some outside advice

ford94sho wrote:Thanks for the honest insight. I can sell the truck if need be. I guess my question is am i being short sighted by sticking with santander? I know people say they suck, but even with a repo in july they will do another loan for me, just want me to trade there open loan.

I have no problems with Santander in the sense if you are in a problematic credit strata, they will often offer a loan when nobody else does, and they report to all the bureaus so you're not stuck with them forever.

That's sort of interesting, what do you mean by trading the open loan? The problem you outlined earlier was that you were underwater on the current auto loan, you're still on the hook for that financially.

It may not be all doom and gloom, do you know what your FICO score is? If it's still reasonably solid you may have some options: if I were in your shoes I'd probably pull the EQ report from here and then start talking to local CU's that I was eligible for and show them my report, explain the situation, and ask the loan officer if they could help me out... if they say yes, eat the inquiries for membership and the loan application for the auto refinance. They tend to be a lot more reasonable with past issues than national lenders and you don't lose anything but time talking to them.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.